MIME-Version: 1.0 Content-Type: multipart/related; boundary="----=_NextPart_01C7EBD3.DEFFEE90" This document is a Single File Web Page, also known as a Web Archive file. If you are seeing this message, your browser or editor doesn't support Web Archive files. Please download a browser that supports Web Archive, such as Microsoft Internet Explorer. ------=_NextPart_01C7EBD3.DEFFEE90 Content-Location: file:///C:/EE89CA34/Chapter104.htm Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii" Chapter 104, Hawaii Revised Statutes Overview

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Chapter 104 Overview
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Jun= e 13, 2007
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Wage Standards Division - DLIR=
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------=_NextPart_01C7EBD3.DEFFEE90 Content-Location: file:///C:/EE89CA34/Chapter104_files/pres.xml Content-Transfer-Encoding: quoted-printable Content-Type: text/xml; charset="utf-8" ------=_NextPart_01C7EBD3.DEFFEE90 Content-Location: file:///C:/EE89CA34/Chapter104_files/slide0081.htm Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii" Chapter 104, Hawaii Revised Statutes Overview
Chapter 104 Overview Wages and H= ours of Employees on Public Works Projects
Wage Standards Division
Department of Labor and Industrial Relations
State of Hawaii
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2 <= /div>
WSD Responsibilities
nConducting investigations and hearings to enforce the six labor laws assigned to the Division;
nCondu= ct educational workshops
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file:///C:/EE89CA34/Chapter104_files/slide0003.htm Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii" Chapter 104, Hawaii Revised Statutes Overview
3
Topics Covered
nOverview of Chapter 104
nCoverage & Classification
nWRS & Posting Requirements
nCertified Payrolls & Record Keeping
nPenalties
nAppeals
n<= span style=3D'mso-special-format:lastCR;display:none'>
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CHAPTER 104, HRS OVERVIEW
nEnact= ed in 1955
nSomet= imes referred to as “Little Davis-Bacon” (patterned af= ter, not to be confused with, the Federal Davis-Bacon A= ct) = nEnsur= e that a prevailing wage standard be paid to laborers and mechanics in = c= ompetitive bidding.
n
n
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5
Enforcement Responsibilities
nBoth the Contrac= ting Agency and the Department of Labor and Industrial Relations have joint responsibility
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COVERAGE & CLASSIFICATION
nChapter 104 is applicable to all state and county construction contracts in excess of $2,000.
nContract means any type of agreement regardless of what the agreement may = be called including:
nPurchase orders
nvouchers
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New Additions to Coverage
nAct 61, Regular Session of 2007 added construction projects funded by Speci= al = Purpose Revenue Bonds nAct 62, Regular Session of 2007 added  construction projects for buildings where more than 50% is leased to a s= tate or county agency.
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WHO IS COVERED BY 104?
nAny laborer or mechanic, including owner-operators 
nworking at the public work site
nTransporting materials, supplies or equipment to or from the work site, = or = between a public work site and a dedicated work site.
nSubcontractors as well as Contractors are covered employers.
n
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9
WHAT TYPE OF PROJECT OR ACTIV= ITY IS COVERED?
nNew Construction
<= span class=3DHBB style=3D'position:absolute;left:-10.36%;top:.61em'>nRec= onstruction
<= span class=3DHBB style=3D'position:absolute;left:-10.36%;top:.61em'>nDev= elopment
<= span class=3DHBB style=3D'position:absolute;left:-10.36%;top:.61em'>nImp= rovement
<= span class=3DHBB style=3D'position:absolute;left:-10.36%;top:.61em'>nAlt= eration
<= span class=3DHBB style=3D'position:absolute;left:-10.36%;top:.61em'>nRep= air
<= span class=3DHBB style=3D'position:absolute;left:-10.36%;top:.61em'>nRen= ovation
<= span style=3D'visibility:hidden'>n
<= span class=3DHBB style=3D'position:absolute;left:-9.25%;top:.61em'>nPain= ting Decorating
<= span class=3DHBB style=3D'position:absolute;left:-10.36%;top:.61em'>nDre= dging
<= span class=3DHBB style=3D'position:absolute;left:-10.36%;top:.61em'>nSho= ring
<= span class=3DHBB style=3D'position:absolute;left:-10.36%;top:.61em'>nSew= er Inspection
<= span style=3D'visibility:hidden'>n
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Other covered activities
nOther activity performed by a laborer or mechanic employed at the site includes the following if the acti= vity is an integral part of or is in conjunctio= n with a construction contract, or if there is substantial construction activity involved in a supply, service, or ot= her type of non-construction contract: 
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Other covered activities = include:
nWarranty work excep= t = when done by the manufacturer on defective products or equipment
nManufacturing or furnishing of materials, articles, supplies, or = equipment on the job site
= n
nDemolition or excavation
nLandscaping
nTermite Treatment
nSome survey work during construction
nSignal man
nInstallation of pre= fab items
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HOW IS THE APPROPRIATE JOB CLASSIFICATION DETERMINED?
nA contractor must identify the appropriate classification from the = applicable wage rate schedule
nThe Classification should reflect the workers’ duties, materials, and tools used to perform the work and conform = to prevailing area practice
nBEWARE: Incorrect classification results in a prevailing wage violations=
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What is prevailing area <= /span>practice?
nPrevailing area practice refers to the classification of work used by = contractors whose wage rates were found to be prevailing in the area an= d = published in the wage rate schedule.
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What happens if there is = no appropriate job classification?
nThe contractor is required to use the closest = existing classification in the wage rate <= span style=3D'font-size:88%'>schedule nThe contractor should first check with the = = contracting agency for assistance nIf the contracting agency is unable to identify = the appropriate classification, they should consult with the Wage Standards Division.
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Disagreement over a prope= r or re- classification ?
nWithin 10 day= s after receiving a request from an interested party, if the = contracting agency has not forwarded a written report of the issues to the <= /span>= Director, the interested party may proceed to ask the Director themselves.  = (12-22-8, HAR)
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Written requests should include;
nProject name and number
nContracting agency&= #13;
nSpecific duties or work performed
nType(s) of materials specified
nTools and equipment used
nThe Classification recommended by the contracting agency and contractor = ;
nA written determination will be made by WSD
n<= span style=3D'mso-special-format:lastCR;display:none'>
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How should job classifications be shown on the certified payroll?
nCertified payrol= ls must show the specific job classification as listed in= the wage rate schedule, which conform with the work performed by the laborer or mechanic on the job site
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Classification Listing Examples
nEquipment Operat= or (Group 1)
<= span class=3DHBB style=3D'position:absolute;left:-10.36%;top:.61em'>nLab= orer II
<= span class=3DHBB style=3D'position:absolute;left:-8.77%;top:.61em'>nCarp= enter (foreman)
n= Roofer Apprentice - level, percentage, or step (Indentu= re date)
n
n
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charset="us-ascii" Chapter 104, Hawaii Revised Statutes Overview
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Truck Drivers employed on= public works projects
nChapte= r 104 is applicable when a laborer or mechanic employed at the public work site is engaged in transporting materials, supplies or equipment:
nTo or from a public work site; or
nBetween a public work sites or dedicated sites
nProper prevailing wage for the driver is determined by the type of truck driven
n
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Apprentices
nApprentice or trainee wage rates in the Wage = Rate Schedule apply only to:
n= Registered participants in recognized programs by = the Workforce Development Division (586-8877) =
n= The allowable ratio of journeyworker to apprentices is met – No “bootstrapping”
n= Apprentice certification is documented to <= /span>Contracting Agency
n<= span style=3D'font-size:86%'>Indentured date & step or level is listed on <= /span>certified payrolls
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Does the law allow “summer hires” or “helpers”?
nOnly helper = classifications listed in the Wage Rate Schedule
nAll others classifi= ed according to the closest existing job classification in the Wage Rate Schedule.
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WAGE RATE SCHEDULE & = POSTING REQUIREMENTS
nThe Wage Rate Schedule is a publication of job classifications and corresponding wage rates determined <= /span>by the Director to be prevailing based on surveys of the construct= ion industry and determinations made by the U.S. = Department of Labor.
<= span class=3DBB style=3D'position:absolute;left:-4.66%;top:.61em'>nhttp:= //www.wdol.gov/dba.aspx#8
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WRS - Updates
nCurrent is WRS 463 Issued Sept 18, 2006 Updated twice a year – on or about Feb. 15 <= /span>= and Sept 15
nAdditional wage rate schedules, addenda, or notices of changes are issued as necessary by = the Director
nAvailable on the Internet at  Index by Topic = at Wage Rate Schedule or: <= span style=3D'font-size:88%;color:#3333CC;mso-color-index:7'>http://hawaii.g= ov/labor/rs/6-14-<= span style=3D'font-size:88%;color:#3333CC;mso-color-index:7'>05update/WRS.HT= M
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Posting Requirements
nThe curren= t wage rate schedule must be posted by the general contractor at the job = site in a prominent and easily accessible place and attached to the “Notice to Workers”= ; <= span style=3D'font-size:88%'>poster (H104-1) = nWhere there is no collective bargaining agreeme= nt in place, every worker needs to receive a copy.
nPartial posting= not acceptable.
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CERTIFIED PAYROLLS
nClass= ification
nPreva= iling Wages
nFringe Benefits
nOvert= ime
nWeekl= y Pay Requirement
nRecord Keeping
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Prevailing Wages
nThe mi= nimum rate of pay for employees to be paid for the type of work performed on the job site.
n    Basic Hourly Rate
n+  Fringe Benefits__
n=3D Prevailing Wage
nAny combination of basic hourly rate and allowable fringe benefit to meet the applicable prevailing wage
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EXAMPLE: Refer to WRS 464 pg 1
= nCarpenter’s rate as of 2/17/2007 =
nBasic hourly rate   =3D $33.95
nFringe hourly rate =3D $18.05
nPrevailing wage =3D    $52.00
nEmployer can either:
nPay the basic and provide allowable fringe = <= span style=3D'font-size:88%'>valued at $18.05;or
nPay the whole $52 directly to employee; or
nPay any combination of the basic hourly rate = & fringe which equals $52 or more
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Increases to the Wage Rat= e Schedule
nWhenever the prevailing wage has increased the contractor must increas= e = the wages accordingly.  Therefore= , future anticipated increases have been included where possible.
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What is an allowable frin= ge benefit
nA fringe benefit is a contribution= irrevocably made by a contractor to a trustee or to a third person according to a fund, plan or program in providing = benefits to a laborer or mechanic, such as medical, life insurance,= and pension.
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An allowable fringe benef= it must:
nA.  Fall into on= e of six categories
1.Health and Welfare
2.Unemployment, life or disability insurance
3.Vacation and holiday pay
4.Pensions
5.Apprenticeship or similarly approved programs
6.Other bona fide fringe benefits <= span style=3D'position:absolute;top:88.25%;left:24.71%;width:72.28%;height:6.5%= '>determined by DLIR
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Allowable fringe must: (continued)
nB. Be made at least monthly to the eligible fund, plan or program.
n Example:<= span style=3D'mso-spacerun:yes'>  HMSA & Kaiser Health Plans=
nC.  Be= paid for all hours worked including overtime hours.
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Examples of Unacceptable = Fringe Benefits
nA contractor claims vacation to meet the fringe benefit requirement.  The policy is that = = the vacation is earned after working one = year.  This is not allowable because:
n= Not paid to a trustee or third party fund, plan, o= r program
n= Not considered irrevocable because the employee = must work one year before receiving the benefit;&#= 13;
n= Not paid at least once a month. =
nSick leave is similar to vacation
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METHOD TO DETERMINE THE FRINGE BENEFIT HOURLY CREDIT
nThe allowable hourly fringe benefit credit is determined by dividing the monthly contribution rate by 173 hours.
nEx: Monthly Health Premium is $173.
n   Hourly Credit: $173 ÷= ; 173 hrs =3D $1.00/hr
nIf the prevailing w= age is $30./hr the employer can claim $1/hr fringe and p= ay $29/hr as the rate.
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When must overtime be paid?
nFor all hours worked on:
n= Saturday;
n= Sunday;
n= A legal State Holiday; or
n= More than 8 hours on any other day whether worked = on one or more projects. <= /span>
nComputed at 1.5 times the basic hourly rate, plus = the fringe benefit rate to equal the overtime prevaili= ng <= span style=3D'font-size:75%'>rate.
nCarpenter Overtime Rate
n$33.95x1.5=3D$50.925+$18.05=3D$68.975
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Calculating Overtime Prevailing Rate for Carpenter
Overtime
Straight Time
$68.975
$0
$68.975
$18.05
$50.925
$51.00
Amount to Pay
$1.00
Possible Fringe = Benefit Credit
$52.00
Prevailing Rate
=3D
$18.05
Fringe Benefit
X1.5
$33.95
Basic Hourly Rate
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Weekly Payment Required
nAll employees mu= st be paid weekly and within 5 working days after the = end of the pay period.
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Submission of Certified Payrolls
nThe general contractor is responsible for <= /span>= submitting all certified payrolls on a weekly <= span style=3D'font-size:88%'>basis to the contracting agency.
nPreserve payroll records for 3 years after the = project.
nThe first certified payroll is allowed to be = submitted the week after the first pay date.  Then every week thereafter.
nCertification affirms that payrolls are correct = and complete, and appropriate classifications = with applicable prevailing wages rates are = <= span style=3D'font-size:88%'>paid.
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Required Information on <= /span>Certified Payroll:
nEmployee’s full name
= n
nLast four digits of Social = Security #
nJob Classification
nRate of pay including = applicable fringe benefits (itemized breakdown)
nDaily & weekly # of hrs worked
nStraight time hours
nOvertime hours
nTotal earnings
nAmount and purpose of deductions
nNet pay
nPayment Date
nSignature of an authorized official of the company
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Format of Certified Payrolls
nNo standard form required; any form that includes all required informatio= n = and is certified is acceptable nFederal form WH-347 is common place = to start and available on line at www.dol.gov/esa  Click on Forms
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SAMPLE CERTIFIED PAYROLL
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